Various approaches and predictions of the future of the logistics and shipping industry until 2040 have been predicted, which can affect the growth or decline of this industry in every corner of the world. Logistics, as a strategic, costly and largely traditional industry that has remained away from the technology revolution, can now take various paths in the next twenty years. Out-of-home delivery is one of these methods.
According to Iran digital economy annotation, one of the most important topics discussed about the logistics industry in the future is the organization of retail goods and the connection of the management of this part of the logistics industry with new technologies. There are several reasons why this part of the industry has been chosen as an area for building new habits in the industry. Including the possibility of connecting this link from the logistics industry to retailers who are connected to the world of technology and electronic commerce or social commerce has given them access to a diverse and wide range of consumers. Users who are eager for new habits and have felt the challenges of using electronic services in the context of traditional infrastructure.
Retail shipping systems have become a complex problem for retailers or online marketplaces in all countries. High shipping costs that will be added to the cost of goods. The immaturity of postal service companies in the field of technology and the scattered coverage of postal service providers and the inappropriate experience of users on both sides of the sale and purchase from the unsuccessful delivery of parcels, which ultimately leads to an increase in cost and energy waste, are among the problems that most of the world’s logistics ecosystems face. are.
In Iran, considering that a small amount of the retail market is in the hands of e-commerce, but a very significant share of postal companies’ shipments belong to retailers who use the Internet to attract and sell.
In recent years, many companies have provided solutions with the motivation to solve the problems and challenges in this field, which may be considered the most important of which is high cost, energy waste, and inappropriate user experience. Smart lockers, mail distribution and collection centers and hubs, smart storage systems are among the methods that have been used in many countries of the world to improve the mail distribution process. But what seems to be effective in the digital economy of Iran and of course the development of infrastructure for the growth of e-commerce, the creation of the necessary infrastructure in the field of logistics is one of the necessities that many leading countries in this field are developing and improving.
Last Mile or delivery to the recipient, the biggest logistics challenge
The challenge of delivery to the recipient was perhaps not so important until the development of e-commerce and online shopping. But with the spread of e-commerce, parcel delivery has become a part of the shopping experience, and its meaning has become something more than parcel delivery. Basically, the only point of real contact with the customer was at this point. The contact of postman or courier with customers is always a concern of online stores. This interaction can be pleasant and effective or unpleasant and lead to an inappropriate experience of online shopping. From this perspective, out-of-home shipping is an opportunity for the e-commerce industry to create a controlled, hands-off experience for its users. On the other hand, dealing with customers and receivers is a big challenge for couriers and postal workers. Many shipments are canceled because the recipient is not present at the destination, which means a huge cost for the logistics system and a draining activity for the team of postal agents and couriers.
The shipment delivery stage is the weakest link in the logistics chain, usually the rest of the stages are done automatically and can be calculated and predicted in terms of cost and time. But the delivery stage is completely dependent on people. The recipient and the deliverer are two factors that are very difficult and even impossible to control and predict. For this reason, many online stores use their own fleet to send orders.
On average, 80% of intra-city transportation in big cities belongs to the moving fleets of companies and manufacturers, not specialized logistics providers, and this issue has caused an increase in noise pollution, traffic and pollution.
In one of Mackenzie’s reports, the stage of delivery of parcels is mentioned as the most expensive part of the logistics chain. In this method, where the shipment must be delivered to the door or to a specific person, the possibility mentioned in this report is that the share of 70% of the cost of transportation from the total cost of logistics in the world and the share of 40% of the Last Mile or the delivery stage of this cost Is. This part of the industry is also attractive for various companies and various companies around the world are active in this sector with the aim of providing services.
But the key to success in providing services at this stage depends on establishing good and effective communication with delivery recipients and using effective and innovative methods in the logistics industry. According to the report of the World Trade Organization, advanced analytics and the Internet of Things such as Load Pooling are among the tools that ultimately lead to a 10% reduction in costs, a reduction in the costs of shipping units, and a 30% reduction in congestion in processes.
OOHD home delivery is a new and effective solution
OOHD or Out-of-Home Delivery is a logistics method that distributes shipments to various locations and destinations. Points such as service centers that have many clients, such as supermarkets, smart lockers, or special parcel distribution centers.
This method brings many benefits to both beneficiaries of logistics services. The first advantage is flexibility and the opportunity to choose for the recipient of the message. A second benefit is the reduction in failed delivery rates, which are costly for postal distributors. Choosing the right time and place to send and deliver the shipment is an optimal opportunity for the logistics system to distribute the retail cargo and, of course, the recipient of the shipment.
This method involves moving the shipment to a fixed and specific location or even a mobile location such as a car that is accessible and flexible in terms of time for the final recipient. This method reduces costs in two ways. On the one hand, it greatly reduces the cost of couriers and workers to carry the parcel, and on the other hand, it prevents it from being stored out of place or carrying parcels to several points and increasing vehicle fuel consumption.
In this case, the recipient can pick up his order by going to the smart lockers or using PUDO or online shopping and receiving from the physical store. These methods have many advantages for retailers.
Infrastructures for logistics development with technological solutions
In Iran, despite the existence of a wide logistics network throughout the country and 100% coverage of postal companies, the main infrastructures for technological development and of course the use of new solutions in the logistics industry are not news. Some companies, such as Jaabaar or Ganje, have designed and presented smart locker solutions to receive mails outside the home, but this solution alone is not responsible for the development in the delivery of mails to the recipient. One of the solutions that have been tried in some countries is the use of a third place such as a supermarket, bank counters or large parcel delivery centers, which can be considered as an alternative to home delivery.
“Padrozone” is one of Padro’s new ideas, which aims to provide the OOHD method by creating a wide network in cities to enable the delivery of parcels outside the destination point for people, especially online buyers.
Padro’s main goal in developing its location-based warehousing platform is to provide more convenience, flexibility and speed in a comprehensive and unrestricted delivery of parcels to businesses that operate online. These services allow customers to choose the place and time of order delivery based on their conditions and preferences. Through this platform, postal companies and of course sellers can improve logistics costs and add shipping speed. Access to accessible spaces for citizens, which are introduced to postal companies as distribution warehouses, increase coordination and productivity in the supply chain and drastically reduce time, operational and Riali costs.
In fact, this tool wants to become one of the executive arms of the O2O ecosystem to strengthen the infrastructure for the development of the country’s digital economy and, of course, Iran’s logistics industry, and can be used by various industries and players in this cycle.
In the end, the expansion of distribution areas for retail goods brings exorbitant costs for online businesses, one of the barriers to growth and profitability in e-commerce is the logistics issue, which always affects the buyer’s decision, and on the other hand, it is difficult to manage costs with variable costs. In social business, this discussion is one of the unsolved challenges in the industry. The use of various options for sending and delivering shipments will seriously control logistics costs and will accelerate the profitability process and raise the level of service.
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